Rivian and Lucid Valued Higher Than Ford Yet Still Haven’t Sold Anything

In this SPAC-crazy world of startup valuations, both Rivian and Lucid are each valued higher than Ford Motor Company. Rivian, in particular, has not shown it is actually delivering vehicles. So in the 12 years of its existence, it has generated no income because it has not sold anything. It is finally producing trucks, so that equation should change by next year. Still, Ford has been cranking out vehicles profitably for over 100 years. 

You won’t believe the market value of Rivian and Lucid

Passenger's side front angle view of silver Rivian R1T in a comparison between the Rivian R1S
L.A. Silver Rivian R1T | Rivian

Just where are Rivian and Lucid at? Tesla is at the top of the heap valued at $1 trillion, followed by Toyota at $306 billion, then Rivian at $140 billion. Right now, it is the highest-valued company with the distinction of having no revenue. 

Just for some perspective, Volkswagen is valued at $139 billion, with its myriad factories, distributors, dealers, and car production for decades around the world. And Rivian has raced past what Mercedes Benz, GM, and Ford are all worth. All three of these conglomerates are in heavy development and beginning production of EVs. 

As for Lucid, its current market capitalization is north of $76 billion. The day last week when Lucid announced larger losses and lower sales than predicted for Q3, its stock was in high demand with ever-increasing value. Investors were no doubt pumped by it being named Motor Trend Car of the Year. And it did announce it had begun production at its Casa Grande, Arizona plant. So, as with Rivian, it is on the cusp of finally delivering its Air sedan to customers. 

What is fueling Lucid and Rivian stock prices?

This is the 2022 Lucid Air, the winner of MotorTrend's Car of the Year award. | Lucid
MotorTrend’s Car of the Year | Lucid

And all of the electric car company stocks are rising as EV adoption grows at a faster clip. What makes these valuations and stock surges alarming are that none of it is based on any profit margin figures. That is because, again, there has been no revenue to base it on. 

If you remember Nikola, then you might have seen this picture before. Just last summer, it too was worth billions, yet had no revenue. Of course, as mentioned before, both Rivian and Lucid are producing vehicles, if not any revenue. Chief market analyst for CMC Markets recently told Bloomberg, It’s seriously mind-boggling when it hasn’t even earned any discernible revenue yet.”

By 2022 we’ll have a better perspective of how right or wrong this all is

Side view of Rivan Blue 2022 Rivian R1S
Rivian Blue 2022 Rivian R1S | Rivian

Indeed. Lucid is looking to 2022 as the year it will produce 20,000 vehicles with a caveat. It’s “confident” it can hit that production number but says there could be global supply chain disruptions. Even for Tesla, the youngster in vehicle production, 20,000 vehicles might be a week’s worth of production. It’s a spit in the ocean for GM, Ford, and Stellantis. 

So as the Motley Fool site has said in the past; you know the stock price, but not the value of either of them. The start-up EV makers have everyone’s attention, and a lot of their money, too. This time next year this period of crazy investments, predictions, and hope, will be in better perspective. Everyone is hoping for the next Tesla. Can lightning strike multiple times in the same spot? 

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